How To Calculate Your Adwords Pay Per Click Traffic's Lifetime Value

When you spend money on Google AdWords pay per click marketing, it's crucial to understand what you're getting for your money. One mistake many new PPC marketers make is going after an immediate sale. And this is great. In fact, PPC marketing is an excellent vehicle for getting immediate sales.

But, as any successful business person knows, it's the long-term (lifetime) customer who drives repeat sales --- and ultimately plays a large part in a business's success. So, how do you turn the prospects you attract with your Google PPC marketing into valued, lifetime customers?

It's simple actually. Following are a few questions that will help you to calculate your paid traffic's lifetime value.

Questions to Ask That Help You Determine a Customers Lifetime Value (LTV)

What is the value of the product/service you're selling?
How much is it costing you to acquire each customer?
How many times will they buy from you in a given year?
Approximately how much will they spend with you in a given year?

With the answers to these questions, you can begin to get a pretty good idea of where to focus your PPC marketing efforts.

Following are some things you can do to actively turn prospects you acquire through your Google AdWords pay per click marketing into long-term customers.

Actively Seek Referrals: This can be as simple as putting a "refer a friend" button on your site.

Incentive Programs:
For your best customers, set up incentive programs, eg, buy three, get one free. Or buy two and get a 15% discount on the third item. The ways of doing this are innumerable. And, it doesn't have to be new and exciting.

The reason some marketing methods stand the test of time is that they work!

Birthday Cards:
If you collect personal data on your customers like their birthday, be sure to use it to stay in touch. A simple e-birthday card with a discount "to celebrate your special day" can go a long way towards cementing your relationship with customers.

Ask for Feedback:
This is one of the best things a business can do to convert pay per click traffic (or any kind of traffic) into long-term customers. By asking customers what you're doing right, what you're doing wrong, how you can improve, products/services they'd like to see you add/drop, etc., you're getting first-hand information. No amount of "test marketing" can beat this.

As you can see, the "real" value of your Google AdWords pay per click marketing is not the customer that surfs through your doors today, but the ones who will be there to click through for years to come.